Quarterly Return Filing & Monthly Payment of Taxes (QRMP) Scheme

What is the QRMP scheme?

Brought into effect from 1st January 2021, the Quarterly Returns Monthly Payment (QRMP) scheme allows registered taxpayers with an aggregated turnover of up to INR 5 crores in the previous financial year to file quarterly returns and make tax payments monthly.

Previously, taxpayers were required to file GSTR-1 and GSTR-3B monthly, but with the QRMP scheme, they can file returns once a quarter. For example, in the quarter of April-June, you can file returns once and pay taxes for April by the due date in May. Under this scheme, you need to pay taxes monthly (i.e., the first two months of a quarter) using the fixed sum method (through a pre-filled challan) or the self-assessment method (due tax amount after adjusting ITC). These two methods will be explained in detail further on in this guide.

Once you opt for this scheme, you will continue to be in it unless you cross the turnover threshold or opt out.

Why is the QRMP scheme important?

• Small business taxpayers must be aware of this scheme since it would help reduce the number of returns they have to file in a year.
  
• Eligible taxpayers can also use the optional Invoice Furnishing Facility (IFF) with this scheme. IFF allows you to file four GSTR-1 returns in a year and upload invoices for the first two months instead of waiting until the end of the quarter while filing the return. With IFF, your buyers can also claim Input Tax Credit (ITC) faster.
  

Criteria for the QRMP scheme

Who can avail of this scheme?

Suppose you’re not a previously registered taxpayer (normal taxpayer/SEZ Developer/SEZ unit). If you have just obtained a new registration, or if you’re opting out of the Composition Scheme, you can still choose the QRMP scheme. However, if you are a GST practitioner, you cannot opt-in/out of the QRMP scheme on behalf of a taxpayer.

The choice to avail of this scheme is also dependent on the Goods and Services Taxpayer Identification Number (GSTIN). So, if you have one Permanent Account Number (PAN) and several GSTINs, you can avail of the QRMP scheme for certain GSTINs, depending on the following criteria.

Criteria

• You can avail of this scheme only if you are liable to file Form GSTR-1 and Form GSTR-3B returns.
• You need to have an aggregate turnover of up to INR 5 crores or less in the preceding financial year. If your turnover crosses this threshold amount, you will not be eligible for the scheme from the next quarter.
• You should have filed your last due GSTR-3B return.
• You should not have any data saved in Form GSTR-1 in the portal for the period you’re opting for the scheme. Once you have deleted the saved information in Form GSTR-1, you can opt for the scheme.
  

How to avail the QRMP scheme

You can opt-in/out of the QRMP scheme by visiting the GST portal :

• Click Login >> Services >> Returns.
• Then, click the Opt-in for quarterly return option.

If you are a previously registered taxpayer:

If you had an annual turnover of up to INR 5 crores for the financial year 2019-20, and if you have filed the GSTR-3B return for October 2020 by November 30th 2020, you would have automatically been migrated to the QRMP scheme for the quarter of January-March 2021. If you have been migrated, you will be assigned a specific return option for this quarter.

If you have a turnover of up to INR 1.5 crores in the current financial year and

• file GSTR-1 quarterly, you will be assigned the GST quarterly return option.

• Filed GSTR-1 monthly, you will be assigned the GST monthly return option.

If you had a turnover between INR 1.5 crores-5 crores in the preceding financial year, you would be assigned the GST quarterly return option.

If you are a registered taxpayer and have not been migrated, you can opt for this scheme once you fulfil the criteria.

If you are a newly registered taxpayer:

You can opt for this scheme if you have been given registration during the first month. However, if you have been granted registration during the latter two months of a quarter, you can opt for QRMP only from the next quarter. For example, for the quarter of April-June, if you have been registered by April, you can avail of the QRMP scheme for that quarter. If you have been registered only in May or June, you cannot avail QRMP for that quarter and can only avail it for the next. Till then, you will have to file GSTR-1 and GSTR-3B monthly.

When to avail of the QRMP scheme and submit returns

You can opt-in/out of the scheme for a particular quarter between the first day of the second month of the preceding quarter and the last day of the first month of the next quarter. For example, if you want to opt for this scheme for the quarter of April-June, you should do so between February 1st to April 30th.

You should submit the GSTR-3B return for each quarter by the 22nd or 24th of the following month, as per the state/union territory where your principal place of business is registered. Based on the criteria mentioned previously (that the last GSTR-3B should be filed before opting for QRMP), if you wish to opt for the QRMP scheme for the quarter of April-June, you should have submitted your GSTR-3B return for March by the 22nd or 24th of April. If you opt out of the scheme, you will have to file GSTR-1 and GSTR-3B monthly.

Under the QRMP scheme, you can use the Invoice Furnishing Facility (IFF) to upload invoices for the first two months of a quarter. For each month, you can submit details of your outward supplies to a registered person till the 13th of the following month. For the last month, you will have to submit GSTR-1.

Payment of taxes under the QRMP scheme

For the first two months of a quarter, you will have to pay taxes through Form PMT-06 and generate a payment challan. The payment for each month should be made by the 25th of the following month. You can use two modes of payment:

Fixed Sum Method

If your last GSTR-3B was filed quarterly, you could get a pre-filled challan for an amount equal to 35% of the tax amount (paid in cash) in the previous quarter. However, if you are a new taxpayer, have not filed your last GSTR-3B, or opted out of the Composition scheme, you cannot access the 35% challan.

If your last GSTR-3B was filed monthly, you could get a pre-filled challan for an amount equal to the total tax amount (paid in cash) in the previous month of the last quarter.

Self-Assessment Method

Here, you can submit the actual tax amount due on inward and outward supplies and the available ITC.